The parking plan’s lump sum payment is being reduced to $85 million, down from $92 million, and the city could be on the hook for $14 million to $15 million to build a garage, according an Oct. 9 memo from City Manager Milton Dohoney to council members and the mayor.
Dohoney wrote that the Greater Cincinnati Port Authority, which is leasing Cincinnati’s parking meters, lots and garages under the 30-plus-year deal, reduced its lump sum payment because of rising interest rates and its decision to reduce parking meter enforcement hours outside of Over-the-Rhine and the Cincinnati Business District.
Under the reviewed deal, the Port Authority also handed the responsibility of building a garage at Seventh and Sycamore streets to the city of Cincinnati. Dohoney recommends using the parking plan’s upfront payment to fund the garage, which will cost between $14 million and $15 million, according to city spokesperson Meg Olberding.
If City Council approves the allocation, the upfront funds would be effectively left at $70 million to $71 million.
The city still estimates it will get at least $3 million in annual installments from the lease.
Supporters of the parking plan claim it’s necessary to fully leverage Cincinnati’s parking assets to fund development projects and help balance the operating budget.
The plan also requires private operators, which will be hired by the Port Authority, to upgrade Cincinnati’s parking assets. The upgrades should allow parking meters to accept remote payments through smartphones, among other new features.
Critics claim the plan gives up too much local control over the city’s parking assets. They say the city and Port Authority could easily be pressured by private operators to hike parking rates far beyond the 3-percent-a-year increase currently called for under the plan.
The plan has also been mired in controversy, notably because the city administration withheld a consultant’s memo from the public and council members that claimed the plan is a bad deal for the city. The city administration says the memo was based on outdated information, but opponents still criticized the lack of transparency behind the deal.
Dohoney wrote in the Oct. 9 memo that the Port Authority’s board plans to meet on Oct. 19 to finalize contracts with private operators. If all goes as planned, the Port Authority estimates the new parking system will be in place by April 2014.